BikeWo Green Tech is positioning itself as a significant player in the electric two-wheeler retail space in India. Initially, the company was engaged in the business of buying and selling used four-wheelers from authorized dealers of reputed automobile brands, a venture that laid the groundwork for its current focus on electric vehicles.

The BikeWo IPO is a Book Built Issue amounting to ₹24.09 Crores, comprising a fresh issue of 38.86 Lakh Shares. The subscription period for the IPO opens on September 20, 2024, and closes on September 24, 2024. The shares will be listed on the NSE SME with a tentative listing date set for September 27, 2024.

The share price band is set between ₹59 to ₹62, with a minimum lot size of 2,000 shares. Retail investors must invest at least ₹124,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹248,000 (2 lots).

The Grey Market Premium (GMP) for the BikeWo Green Tech IPO is currently estimated at ₹0, reflecting the financial performance and subscription status. It is important to note that the GMP is influenced by demand and supply in the unorganized market, which is not a reliable indicator for price discovery.

As of September 24, 2024, at 07:00 PM, the IPO's live subscription status shows that it has been subscribed 39.83 times, indicating strong investor interest.

The allotment date for the BikeWo IPO is set for September 25, 2024. Investors can check their allotment status online by navigating to the registrar's website, selecting BikeWo Green Tech from the dropdown list, and entering their application details.

Objectives of BikeWo Green Tech IPO: The proceeds from the fresh issue will be utilized for:

₹600.00 Lakhs to fund the purchase of electric two-wheeler vehicles for sale to dealers.

₹623.38 Lakhs for capital expenditures towards setting up eleven dealership stores across India.

₹350.00 Lakhs for the prepayment or repayment of outstanding borrowings.

General corporate purposes.

Financial Overview: In terms of financial performance, revenues for the fiscal years 2024, 2023, and 2022 were ₹2,514.21 Lakhs, ₹2,061.86 Lakhs, and ₹1,391.71 Lakhs, respectively. The EBITDA figures for the same years were ₹282.29 Lakhs, ₹67.14 Lakhs, and ₹100.38 Lakhs. Profit after tax saw a notable increase, rising to ₹167.21 Lakhs in FY24 from ₹9.80 Lakhs in FY23.

For the IPO, the company has a pre-issue EPS of ₹2.51 and a post-issue EPS of ₹1.28. The pre-issue P/E ratio stands at 24.70x, while the post-issue ratio rises to 48.43x. The company's return on capital employed (ROCE) and return on equity (ROE) for FY24 are 10.87% and 13.94%, respectively, suggesting a fair pricing of the IPO.

Given the financial performance and valuation metrics, it is advisable for investors to avoid the BikeWo Green Tech Limited IPO for both listing gains and long-term investment.

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